America recently obliged all companies to ensure that the artificial intelligence chips sent to China, which it embargoed, do not exceed a certain power capacity. AMD, which had to produce low-quality chips specifically for China due to this embargo, seems to have hit the wall this time.
The company’s products designed to be exported to China were deemed too good by American authorities. It has become a matter of curiosity to which countries these second-class chips, which cannot currently receive a sales license, can be sold. This situation may also mean a red alert for other chip manufacturers in the country. Here are all the details…
AMD is having problems with the embargo!
China is seen as a major market by American companies due to its huge population and booming industry. Therefore, while companies want to comply with all embargoes, they also aim to continue selling here. Considering the number of artificial intelligence chips that will be needed by approximately 5 million data centers in China, there may be a real treasure here.
The company’s investors also strongly support AMD’s expansion in this country as much as possible. However, the Chinese administration’s aggressive artificial intelligence strategy seems to be the biggest obstacle in this regard for now. It is claimed that the administration, which directly controls many companies in its territory, does not favor the import of low-quality chips.
Although AMD executives, who believe that they have reduced the power of artificial intelligence chips sufficiently, have appealed to the US Department of Commerce on the issue, they have not yet received any concrete results. Arguing that these chips may pose a danger when they fall into the hands of countries that are considered a threat, such as China and Russia, the ministry seems to not compromise on the precautions it has taken. It is known that the other giant chip manufacturer, Nvidia, is also making intense efforts to comply with the ministry’s chip standards.
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So what do you think about this issue? Do you think America’s strategy is correct? What should AMD do? You can easily share your answers with us in the comments section below. Your opinions are very valuable to us.